Calamos Announces Initial Upside Cap Rates for World's First 90% and 80% Downside Protected Bitcoin ETFs With Successful Launch of CBXJ and CBTJ

Rhea-AI Summary

Calamos has successfully launched two groundbreaking Bitcoin ETFs offering downside protection with upside potential. The new funds are: CBXJ, providing 90% downside protection with a 29.15% initial cap rate, and CBTJ, offering 80% downside protection with a 51.50% initial cap rate. Both ETFs have a one-year outcome period from February 4, 2025, to January 30, 2026.

These innovative products complement Calamos' existing 100% protected Bitcoin ETF (CBOJ) and are built upon their Structured Protection ETF series launched in 2024. The ETFs track the CBOE Bitcoin US ETF Index and carry an annual expense ratio of 0.69%. The funds aim to bridge traditional finance and digital assets, providing investors with risk-managed Bitcoin exposure through a liquid, transparent, and tax-efficient ETF structure without counterparty credit risk.

Positive

• First-to-market Bitcoin ETFs with 90% and 80% downside protection
• Attractive cap rates of 29.15% (CBXJ) and 51.50% (CBTJ)
• No counterparty credit risk
• Tax-efficient ETF structure

Negative

• 0.69% annual expense ratio for both funds
• Upside potential is capped at stated rates
• Protection levels only apply if held for entire outcome period

Insights

ETF Product Specialist

The launch of CBXJ and CBTJ marks a significant evolution in bitcoin investment products, introducing unprecedented downside protection mechanisms in the ETF space. These products employ sophisticated options strategies to create a defined outcome structure - essentially providing a safety net while allowing for meaningful upside participation in bitcoin's potential growth.

The inverse relationship between protection levels and cap rates is particularly noteworthy: CBXJ offers 90% protection with a 29.15% cap rate, while CBTJ provides 80% protection with a higher 51.50% cap rate. This structure creates a compelling risk-reward proposition for institutional investors who have been hesitant to enter the crypto market due to volatility concerns.

The 0.69% expense ratio for both funds is relatively competitive given the complexity of the protection strategy and compares favorably to many active crypto investment products. The one-year outcome period provides sufficient time for market cycles while maintaining flexibility for investors to reassess their positions annually.

These products could significantly impact bitcoin market dynamics by potentially attracting conservative institutional capital that previously viewed crypto as too risky. The protection mechanism effectively transforms bitcoin's traditionally unlimited downside risk into a quantifiable maximum loss scenario, which could appeal to pension funds, endowments and risk-conscious wealth managers seeking regulated crypto exposure.

Financial Innovation Analyst

This product launch represents a masterful bridging of the gap between traditional finance and digital assets, effectively creating a new category of risk-managed crypto investments. The structured protection approach addresses the primary concern that has kept many institutional investors on the sidelines - extreme volatility and potential for substantial losses.

The strategic timing of this launch, following Calamos' successful structured protection ETFs for traditional indices, demonstrates a thoughtful market expansion strategy. By leveraging their existing expertise in options-based strategies and applying it to bitcoin, Calamos has created a first-mover advantage in a potentially massive market segment.

The systematic launch approach throughout 2025 suggests a carefully planned rollout strategy that allows for market feedback and potential adjustments. The absence of counterparty credit risk, combined with the liquid ETF structure, addresses key institutional concerns about crypto investment vehicles. This could accelerate the institutional adoption of bitcoin by providing a more palatable entry point for conservative allocators who require robust risk management frameworks.

METRO CHICAGO, Ill., Feb. 5, 2025 /PRNewswire/ -- John Koudounis, President and CEO of Calamos, today announced the successful launch and attractive cap rates of two new ETFs offering upside growth potential of bitcoin with 90% (CBXJ) and 80% (CBTJ) protection levels over a one year outcome period. He said, "By introducing these innovative first-to-market offerings, we continue to demonstrate our leadership role in risk-managed bitcoin investment strategies with our Calamos Protected Bitcoin ETF Suite."

The fund's initial cap rates were determined as follows:                               

CBXJ with 90% downside protection and an initial cap rate of 29.15%

CBTJ with 80% downside protection and an initial cap rate of 51.50%

By offering 90% and 80% downside protection levels, Calamos is bridging the gap between traditional finance and digital assets, allowing investors to participate in bitcoin's potential while maintaining defined risk parameters.

The new ETFs' attractive initial cap rates complement the already launched 100% (CBOJ) protection ETF, providing investors with a combination of protection levels and upside potential unavailable anywhere else. Calamos' full suite of Protected Bitcoin ETFs is set to launch systematically on Cboe throughout 2025, delivering risk-managed bitcoin exposure through the liquid, transparent and tax-efficient ETF structure with no counterparty credit risk.

CBOJ, CBXJ, and CBTJ are built upon the success of the firm's Structured Protection ETF series, launched in 2024, the industry's most comprehensive suite of 100% downside protection strategies on the  S&P 500^®, Nasdaq-100^®, and Russell 2000^®. Within this proven approach, investors can now select from a range of indices, protection levels and outcome periods that align with their investment objectives and risk tolerance.  

Calamos Bitcoin 90 Series Structured Alt Protection ETF® - January (CBXJ)
Protection Level	90% downside protection if held over the outcome period
Launch Date	2/4/2025
Initial Cap Rate	29.15 %
Outcome Period	02/04/25-1/30/26
Reference Asset	CBOE Bitcoin US ETF Index
Annual Expense Ratio	0.69 %
Portfolio Management	Co-CIO Eli Pars and the Alternatives Team

Calamos Bitcoin 80 Series Structured Alt Protection ETF® - January (CBTJ)
Protection Level	80% downside protection if held over the outcome period
Launch Date	2/4/2025
Initial Cap Rate	51.50 %
Outcome Period	02/04/25-1/30/26
Reference Asset	CBOE Bitcoin US ETF Index
Annual Expense Ratio	0.69 %
Portfolio Management	Co-CIO Eli Pars and the Alternatives Team

About Calamos

Calamos Investments is a diversified global investment firm offering innovative investment strategies, including alternatives, multi-asset, convertible, fixed income, private credit, equity, and sustainable equity. With over $41 billion in AUM, including more than $18 billion in liquid alternatives assets as of January 31, 2025, the firm offers strategies through ETFs, mutual funds, closed-end funds, interval funds, and UCITS funds and separately managed portfolios. Clients include financial advisors, wealth management platforms, pension funds, foundations & endowments, and individuals, globally. Headquartered in the Chicago metropolitan area, the firm also has offices in New York, San Francisco, Milwaukee, Portland (Oregon), and the Miami area. For more information, visit us on LinkedIn, on Twitter @Calamos, on Instagram (@calamos_investments), or at www.calamos.com.

The information in each of the Calamos Bitcoin 90 Series Structured Alt Protection ETF^® - January (CBXJ) and Calamos Bitcoin 80 Series Structured Alt Protection ETF^® - January (CBTJ) prospectuses and statements of additional information is not complete and may be changed. We may not sell the securities of either fund until such fund's registration statement filed with the Securities and Exchange Commission is effective. Each fund's prospectus and statement of additional information is not an offer to sell such fund's securities and is not soliciting an offer to buy such fund's securities in any state where the offer or sale is not permitted.

Calamos Investments LLC, referred to herein as Calamos, is a financial services company offering such services through its subsidiaries: Calamos Advisors LLC, Calamos Wealth Management LLC, Calamos Investments LLP, and Calamos Financial Services LLC.

Before investing, carefully consider a Fund's investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.

The Funds seek to provide investment results that, before taking fees and expenses into account, track the positive price return of the CME CF Bitcoin Reference Rate – New York Variant ("BRRNY") ("Spot bitcoin") up to a predetermined upside cap (the "Cap") while seeking to protect against 100%, 90% or 80%, respectively, of losses (before total fund operating fees and expenses) of Spot bitcoin over a period of approximately one (1) year (the "Outcome Period"). The Funds will not invest directly in bitcoin. Instead, the Funds seek to provide investment results that, before taking total fund operating fees and expenses into account, track the positive price return of Spot bitcoin by investing in options that reference the price performance of one or more underlying exchange-traded products ("Underlying ETPs") which, in turn, own bitcoin and/or one or more indexes that are designed to track the price of bitcoin ("Bitcoin Index").

The Target Outcome may not be achieved, and investors may lose some or all of their money. The Funds are designed to achieve the Target Outcome only if an investor buys on the first day of the Outcome Period and holds a Fund until the end of the Outcome Period. While the Funds seek to provide 100%, 90% or 80% protection against losses experienced by the price of Spot bitcoin for shareholders who hold Fund Shares for an entire Outcome Period, there is no guarantee a Fund will successfully do so. If a Fund's NAV has increased significantly, a shareholder that purchases Fund Shares after the first day of an Outcome Period could lose their entire investment. An investment in the Funds is only appropriate for shareholders willing to bear those losses. There is no guarantee the Capital Protection and Cap will be successful, and a shareholder investing at the beginning of an Outcome Period could also lose their entire investment.

An investment in the Funds is subject to risks, and you could lose money on your investment in a Fund. There can be no assurance that a Fund will achieve its investment objective. Your investment in a Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in a Fund can increase during times of significant market volatility. The Funds also have specific principal risks, which are described below. More detailed information regarding these risks can be found in the Funds' prospectus.

Digital Assets Risk: The Bitcoin network was first launched in 2009 and bitcoins were the first cryptographic digital assets created to gain global adoption and critical mass. Although the Bitcoin network is the most established digital asset network, the Bitcoin network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. Moreover, because digital assets, including bitcoin, have been in existence for a short period of time and are continuing to develop, there may be additional risks in the future that are impossible to predict as of the date of this prospectus. Digital assets represent a new and rapidly evolving industry, and the value of the Underlying ETPs' shares depends on the acceptance of bitcoin. The realization of one or more of the following risks could materially adversely affect the value of the Underlying ETPs' shares.

Investing involves risks. Loss of principal is possible. The Funds face numerous market trading risks, including authorized participation concentration risk, underlying ETP risk, cap change risk, capital protection risk, capped upside risk, cash holdings risk, concentration risk, clearing member default risk, correlation risk, costs of buying and selling fund shares, counterparty risk, derivatives risk, equity securities risk, FLEX options risk, interest rate risk, investment in a subsidiary, investment timing risk, liquidity risk, management risk, market maker risk, market risk, new fund risk, non-diversification risk, options risk, OTC options risk, position limits risk, premium-discount risk, secondary market trading risk, sector risk, tax risk, trading issues risk, U.S. Government security risk, U.S. Treasury risk, and valuation risk. For a detailed list of Fund risks see the prospectus.

100%, 90% or 80% capital protection is over a one-year period before fees and expenses. All caps are pre-determined.

Cap ranges—Ranges are based on multiple estimated cap rates obtained from 1/2/25 - 1/17/25, based on market conditions during the sample period, and are subject to change. The actual cap rates may be different based on market events. 

Cap Rate – Maximum percentage return an investor can achieve from an investment in a Fund if held over the Outcome Period.

Protection Level-Amount of protection a Fund is designed to achieve over the Days Remaining.

Outcome Period – Number of days in the Outcome Period.

Calamos Financial Services LLC, Distributor

©2025 Calamos Investments LLC. All Rights Reserved. Calamos^®, Calamos Investments^® and Structured Alt Protection ETF^® are registered trademarks of Calamos Investments.

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SOURCE Calamos Investments

FAQ

What are the cap rates for Calamos' new Bitcoin ETFs CBXJ and CBTJ?

CBXJ has an initial cap rate of 29.15% with 90% downside protection, while CBTJ has an initial cap rate of 51.50% with 80% downside protection.

When is the outcome period for CBXJ and CBTJ Bitcoin ETFs?

The outcome period for both ETFs runs from February 4, 2025, to January 30, 2026.

What is the expense ratio for Calamos' protected Bitcoin ETFs?

Both CBXJ and CBTJ have an annual expense ratio of 0.69%.

What index do CBXJ and CBTJ track?

Both ETFs track the CBOE Bitcoin US ETF Index.

How do Calamos' protected Bitcoin ETFs differ from traditional Bitcoin ETFs?

These ETFs offer downside protection (90% for CBXJ and 80% for CBTJ) while still providing upside potential, though capped, making them unique in the market.